TheStrategyLab.com Price Action Trading Support Forum

Written By M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)

Trade journals are crucial in preventing us traders from becoming complacent or content with our trading plan or the markets because without having the ability to review archives of past trading days in a forever changing market...we won't know it's time to adapt when change occurs in the markets because broker statements alone doesn't help us keep that edge in comparison to a trade journal. In addition, although this journal contains advertisements involving my trade methods, it does contain useful trading tips a few times per week. Thus, if you're looking for trading tips that can improve your trading and understand that profitable trading involves more than just entry signals...consistently read this trade journal and the #FuturesTrades chat room logs where I post my trades in real-time from entry to exit (see link below) via my IRC user name wrbtrader that's the same as my user name on twitter.

Today's #FuturesTrades chat room logs is archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=70&t=436.



FYI - You can ask me questions here at the forum or you can tweet me on twitter about anything related to today's trading or related to your own trading.

@ http://twitter.com/wrbtrader

In addition, posted below are direct links about my trade methodology or trading approach that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body analysis).

http://www.thestrategylab.com/WRBAnalysisTutorials.htm

http://www.thestrategylab.com/TradeStrategies.htm

Also, if you're interested in having free access to one of my profitable trade strategies along with earning extra income with little effort...join my referral program @ http://www.thestrategylab.com/ReferralProgram.htm

My Trading Performance: +23.60 points in the ICE Russell 2000 Emini TF ($TF_F) Futures


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Stocks Manage Gains After FED Announcement
By Alexandra Twin, senior writer
January 27, 2010: 6:16 PM ET

NEW YORK (CNNMoney.com) -- Stocks climbed Wednesday, ending a choppy session higher after the Federal Reserve held interest rates steady and hinted it would continue to do so for the foreseeable future. Meanwhile, Apple introduced its new iPad tablet computer.

The Dow Jones industrial average (INDU) gained 42 points, or 0.4%. The S&P 500 index (SPX) gained 5 points, or 0.5%. The Nasdaq composite (COMP) rose 18 points, or 0.8%.

Stocks churned before and after the Fed statement, with gains in technology, telecom and financial stocks tempered by weakness in industrials and commodities. The bank sector surged, with the KBW Bank (BKX) index rising 2.9%.

Apple's new iPad, a crop of major earnings and a House hearing on the government bailout of AIG were also in focus.

Stocks may have staged the late-session advance in anticipation of President Obama's pending State of the Union address, said Michael Sheldon, chief market strategist at RDM Financial Group.

"Some investors may be looking ahead to a less combative and more constructive speech tonight," Sheldon said. "In addition, the market has also had a pretty sharp downdrift over the last few days."

Following that selloff, investors were perhaps willing to scoop up some of the shares that got pummeled.

Ford Motor (F, Fortune 500) and 3M (MMM, Fortune 500) are both expected to report results before the start of trading. Reports are also due on durable goods orders and weekly jobless claims.
Fed: Recovery gaining strength

State of the Union: In his address to the nation later Wednesday, President Obama is expected to talk about how the government plans to temper the growing deficit over the next decade, even as it continues to promote economic growth in the aftermath of the recent recession.

Obama rattled Wall Street last week when he called for greater restrictions on the biggest financial firms, including limiting the ability of commercial banks to make high-risk trades and stopping them from owning or investing in hedge funds.

He is not expected to directly address that particular proposal, but his rhetoric on the banking system and the economy will be closely watched by Wall Street.

Federal Reserve: The central bank opted to hold the fed funds rate, a key short-term bank lending rate, at a historic low near zero percent, as had been widely expected.

In the closely watched statement, the bankers offered little new guidance, saying the economy has continued to strengthen since December's meeting and that the pace of the slowdown in the labor market is slowing. However, the statement did not provide any insight as to when the Fed plans to loosen its accommodative policy -- something investors are very focused on.

One notable surprise was that Kansas City Fed president Thomas M. Hoenig disagreed with the group's decision to state that conditions "are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

Hoenig, a known inflation hawk, thought that activity was picking up at a pace sufficient to change the language to suggest that rates could rise a little sooner.

The phrase "extended period of time" suggests rates will be held steady for at least six months if not more, said James Barnes, vice president and fixed income co-manager at National Penn Investors Trust. Hoenig's dissent indicates he might like to see rates start to move higher in the first half of the year.

However, rates are unlikely to move anytime soon, Barnes said. The combination of low interest rates and the injection of trillions of dollars of stimulus into the system helped fuel the stock market rally last year and take the edge off the worst recession since the Great Depression. The Fed is unlikely to step back just yet, especially when the recovery is still tentative.

"The economic news has in some ways been more positive than anticipated, outside of what we've seen in housing," Barnes said. "But we're still a long ways away from when the Fed is going to be comfortable raising rates or pulling money off the table."

With his term set to expire Sunday, questions remain about whether Fed Chief Ben Bernanke has enough votes in the Senate to force a confirmation vote. Worries that his term might not be renewed contributed to last week's massive stock selloff, in which the Dow, S&P 500 and Nasdaq all lost 5% in three sessions.
0:00 /3:55Jobs on iPad: This ain't no Netbook

Apple: Apple (AAPL, Fortune 500) revealed the new iPad - a 1.5-lb, half-inch wide tablet computer that falls between a smartphone and a laptop.

Apple shares initially dipped as the announcement was underway, but reversed course to end about 1% higher after the lower-than-expected starting price of $499 was announced. Rumors had pegged the price as being closer to $1,000.

Apple shares are down about 1% year-to-date as of Wednesday's close, after spiking 147% in 2009.

Housing: New home sales plunged to a 9-month low, according to a Census Bureau report released Wednesday. Sales fell 7.6% to a seasonally adjusted annual rate of 342,000 in December from a revised rate of 370,000 in November.

Quarterly results: Shares of Caterpillar (CAT, Fortune 500) slid 4% after the heavy-machinery maker issued a 2010 earnings forecast of $2.50 per share, short of the $2.71 per share analysts were expecting, on average. The Dow component said that a global economic recovery only favors some of its business units rather than all.

Caterpillar also reported weaker quarterly earnings that nonetheless topped estimates and weaker revenue that missed expectations.

Fellow Dow component Boeing (BA, Fortune 500) reported a quarterly profit versus a year-ago loss on higher quarterly revenue. Results topped forecasts. However, looking forward, the company forecast 2010 earnings of $3.70 to $4 a share versus forecasts for a profit of $4.26 per share. Nonetheless, Boeing stock rallied 7%.

After the close Tuesday, Yahoo (YHOO, Fortune 500) reported a quarterly profit that reversed a year-ago loss, as the online advertising market showed some signs of life. Results were better than expected. The Internet behemoth also reported weaker quarterly revenue that topped estimates. Shares were little changed Wednesday.

World markets: In overseas trading, Asian and European markets tumbled again on concerns about China's bank lending curbs. Global stocks got hammered Tuesday after Standard & Poor's warned it could cut its debt rating on Japan.

Meanwhile, China implemented some of the bank curbs that had been hinted at last week. China is one of the main drivers of the global economy and any slowdown would have a broad impact.

Commodities and the dollar: The dollar reversed course after the Fed statement, falling versus the euro and gaining against the yen.

COMEX gold for February delivery fell $13.80 to settle at $1,084.50 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last month.

U.S. light crude oil for February delivery fell $1.04 to settle at $73.67 a barrel on the New York Mercantile Exchange.

Bonds: Treasury prices rose, lowering the yield on the 10-year note to 3.60% from 3.62% late Tuesday. Treasury prices and yields move in opposite directions.



Yahoo! Finance

4:30 pm : Stocks spent most of the session mired in moderate weakness, but were able to push higher in the wake of the latest statement from the Federal Open Market Committee (FOMC).

The first FOMC policy statement of the new year came on the eve of a vote to put Ben Bernanke back into the seat of Fed Chairman. To little surprise the statement indicated that economic activity continues to strengthen and that the deterioration in the labor market is abating. The FOMC also opted to keep the federal funds rate at 0.00% to 0.25% and will maintain exceptionally low levels for an extended period of time. Kansas City Fed President Hoenig was the only FOMC member to dissent.

A knee-jerk reaction to the statement caused stocks to whipsaw before they eventually pushed into positive territory. Financials, which had steadily outperformed since the opening bell, were a primary leader in the late advance. The sector managed to make its way to a 2.3% gain. Regional bank stocks (+3.7%) and diversified banks (+4.1%) were leaders in the sector. Their strength came amid news that Barney Frank, Chairman of the House Financial Services Committee, stated that proposals to clamp down on risky activities at banks could be put into law within months. Such measures would likely have more of an adverse impact on larger, diversified financial services companies, but even they were able to climb 2.4% this session.

While financials provided leadership to the broader market, Apple (AAPL 207.88, +1.94) helped the Nasdaq Composite outperform its counterparts. Apple's advance came amid a favorable reaction to the company's newly launched iPad, as well as pricing for the product. News that Apple will rely on the network of AT&T (T 25.62, +0.29) provided support for the integrated telecom giant.

There were several earnings announcements for participants to chew on this session, but the results were largely overshadowed by anticipation for the FOMC statement. Still, earnings continue to generally exceed expectations -- Caterpillar (CAT 53.44, -2.41), United Technologies (UTX 67.61, -1.57), Boeing (BA 61.93, +4.22), Illinois Tool Works (ITW 43.99, -1.20), Abbott Labs (ABT 53.90, -0.58), and ConocoPhillips (COP 49.81, -0.62) were part of the latest bunch. However, some of the reports were of lesser quality and featured mixed guidance.

Despite another underwhelming response to earnings, the stock market was still able to book a gain this session. However, all three major indices remain below their 50-day moving averages.

Commodities were wrought with weakness this session. Not even a surprise draw in weekly crude oil inventories could deter sellers from dragging down oil prices to close pit trade with a 1.4% loss at $73.64 per barrel. Oil had been as low as $72.65 per barrel, which marked a one-month low.

Collective weakness among commodities gave the CRB Commodity Index a 1.9% loss. That marks its worst single-session percentage slide in two months and leaves the CRB down 2.5% week-to-date.

The latest batch of new home sales numbers were displeasing. According to the report, annualized new home sales for December made a 7.6% monthly decline, which contrasted negatively with the consensus call for a 3.0% month-over-month increase.

Advancing Sectors: Financials (+2.3%), Tech (+0.6%), Health Care (+0.6%), Consumer Discretionary (+0.4%), Telecom (+0.4%), Industrials (+0.2%), Consumer Staples (+0.1%)
Declining Sectors: Materials (-0.8%), Energy (-0.6%), Utilities (-0.5%)DJ30 +41.87 NASDAQ +17.68 NQ100 +0.8% R2K +1.0% SP400 +0.2% SP500 +5.33 NASDAQ Adv/Vol/Dec 1577/2.48 bln/1076 NYSE Adv/Vol/Dec 1517/1.30 bln/1515

3:30 pm : Commodities were wrought with weakness this session. Not even a surprise draw in weekly crude oil inventories could deter sellers from dragging down oil prices to close pit trade with a 1.4% loss at $73.64 per barrel. Oil had been as low as $72.65 per barrel, which marked a one-month low.

Natural gas prices were dropped for a 3.7% loss as they closed pit trade at $5.23 per contract. Natural gas prices posted their own one-month low at $5.18 per contract.

Precious metals weren't any better this session. Gold prices sank 1.3% to close at $1084.50 per ounce. Silver settled 2.5% lower at $16.44 per ounce.

Collective weakness among commodities gave the CRB Commodity Index a 1.9% loss. That marks its worst single-session percentage slide in two months and leaves the CRB down 2.5% week-to-date. Heading into this week, the CRB had already logged two consecutive weekly losses, which totaled 3.2% and 2.1%, sequentially. DJ30 +2.72 NASDAQ +8.28 SP500 +1.33 NASDAQ Adv/Vol/Dec 1375/2.05 bln/1270 NYSE Adv/Vol/Dec 1239/965 mln/1780

3:00 pm : Stocks recently made a sharp, upward push into positive territory. However, the move has run into resistance and the broader market is now back near the neutral line.

Despite mixed action in the broader market, financials have climbed to fresh session highs. The sector now sports a 1.4% gain as regional banks rise to a 3.6% gain and shares of diversified banks climb 3.3%.

Meanwhile, the tech-rich Nasdaq has managed to make its way to a modest gain, though. Apple (AAPL 209.32, +3.38) and Research In Motion (RIMM 63.39, +1.77) have been leaders in its advance. Apple's advance comes amid a favorable reaction to the company's newly launched iPad, as well as pricing for the product. DJ30 +3.56 NASDAQ +8.40 SP500 +0.88 NASDAQ Adv/Vol/Dec 1333/1.83 bln/1283 NYSE Adv/Vol/Dec 1195/861 mln/1819

2:30 pm : Stocks are back at earlier levels, but were momentarily whipsawed by the latest FOMC policy statement. The statement indicated that economic activity continues to strengthen and that the deterioration in the labor market is abating. The FOMC also stated that it will maintain the target range for the federal funds rate at 0.00% to 0.25% and that exceptionally low levels of the federal funds rate are expected to be warranted for an extended period of time.

Kansas City Fed President Hoenig was the only FOMC member to to vote against the policy action. Hoenig believed that economic and financial conditions had changed such that the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted.

Hoenig's vote suggests that higher interest rates may come sooner than later and, as a result, has helped win support for the U.S. dollar, which has made its way to a 0.4% gain against competing currencies. DJ30 -51.16 NASDAQ -4.26 SP500 -5.37 NASDAQ Adv/Vol/Dec 1171/1.64 bln/1441 NYSE Adv/Vol/Dec 947/762 mln/2064

2:00 pm : Participants are preparing for the latest policy statement from the Federal Open Market Committee (FOMC). The statement is expected to be released at 2:15 PM ET and comes just one day before the Senate is scheduled to vote whether Fed Chairman Bernanke will be back for a second term.

Some key items to look for in the statement include comments on whether economic activity has continued to pick up and whether deterioration in the labor market has abated.

Another key issue is whether financial market conditions have become more supportive of economic growth. In a similar regard, participants will watch to see whether the Fed's process of purchasing $1.25 trillion of agency mortgage-backed securities and some $175 billion of agency debt will be executed by the end of the first quarter 2010. DJ30 -49.57 NASDAQ -5.13 SP500 -4.99 NASDAQ Adv/Vol/Dec 1173/1.45 bln/1437 NYSE Adv/Vol/Dec 938/3677 mln/2069

1:30 pm : The stock market has returned to its session low amid broad-based weakness. Financials remain firmly higher, though; the sector sports a 0.7% gain at the moment.

Meanwhile, shares of Apple (AAPL 202.52, -3.42) have made a sharper move lower, though they have since steadied their slide. The stock's downturn comes as reports hit news wires regarding Apple's latest product, the iPad, which is reportedly a type of cross between a laptop and an iPhone. DJ30 -47.53 NASDAQ -7.71 SP500 -5.89 NASDAQ Adv/Vol/Dec 1153/1.34 bln/1441 NYSE Adv/Vol/Dec 931/625 mln/2066

1:00 pm : The stock market remains stuck in negative territory with a modest loss as participants dismiss another batch of better-than-expected earnings to prepare for the latest Federal Open Market Committee (FOMC) announcement (2:15 PM ET).

Several widely-held companies, including Caterpillar (CAT 51.68, -4.17), United Technologies (UTX 66.90, -1.57), Boeing (BA 61.13, +3.42), Illinois Tool Works (ITW 43.66, -1.53), Abbott Labs (ABT 53.41, -1.07), and ConocoPhillips (COP 49.53, -0.90), released upside earnings surprises for the latest quarter. However, themes like low quality earnings, mixed guidance, and an interest to sell-the-news have made for an underwhelming response to the announcements.

Financials have managed to find favor after they led a broader market downturn in the previous session. The sector is up 0.5% as regional bank stocks (+1.9%) and diversified banks (+1.8%) gain ground in the face of news that House Financial Services Committee Chairman Frank stated in an interview with Financial Times that proposals to clamp down on risky activities at banks could be put into law within months, though he believes banks should be given sufficient time to avoid a firesale.

AIG (AIG 24.22, -0.18) has been unsteady this session as Treasury Secretary Geithner and former Treasury Secretary Paulson testify before a House panel about the bailout of the insurance giant. Despite plenty of bullying by congressional officials, the testimonies haven't unveiled anything new about the actions taken by the Treasury in 2008.

While financials make up the only major sector to currently sport a gain, materials stocks are the worst off this session and are presently down 2.2%. Steel stocks, which are down 4.5%, have been a primary source of weakness in the sector as U.S. Steel (X 46.04, -3.57) extends its slide from the previous session to trade further below its 50-day moving average. Its latest fit of weakness follows a downgrade from analysts at Goldman Sachs.

New home sales for December didn't do anything to improve the mood of participants with its midmorning release. According to the report, annualized new home sales made a 7.6% monthly decline, which contrasted negatively with the consensus call for a 3.0% month-over-month increase.

Later this afternoon the FOMC will issue its latest policy directive. Close attention will be paid to whether the language in its directive is altered in light of economic changes and measures for tighter monetary policy in China.DJ30 -45.34 NASDAQ -4.01 SP500 -5.58 NASDAQ Adv/Vol/Dec 1170/1.20 bln/1410 NYSE Adv/Vol/Dec 952/559 mln/2021

12:30 pm : Regional bank stocks are up 2.2% and diversified banks are up 1.9% in the face of news that House Financial Services Committee Chairman Frank has stated that presidential proposals to clamp down on riskier activities at banks could be enacted into law within months, according to Financial Times. The article also stated that Frank believes that banks should be given sufficient time to divest certain operations in order to avoid a fire sale, however.

Strength among bank stocks has helped keep the broader financial sector in positive territory. The sector is currently up 0.7%.

Health care makes up the only other sector to currently sport a gain. It is up a much more modest 0.1%, though. Both Abbott Labs (ABT 53.55, -0.93) Stryker (SYK 52.74, -1.82) have undermined the health care sector, even though they both posted positive earnings surprises for the latest quarter. Their outlooks differed, though, in that Abbott issued upside guidance and Stryker issued downside guidance. DJ30 -30.76 NASDAQ +0.54 SP500 -2.83 NASDAQ Adv/Vol/Dec 1241/1.09 bln/1314 NYSE Adv/Vol/Dec 1061/505 mln/1910

12:00 pm : Small-cap stocks in the Russell 2000 have managed to make a modest 0.2% gain after they underperformed with a 1.0% loss in the previous session. The patch's modest pick up comes amid strength in Super Micro Computer (SMCI 13.40, +1.79) and Viewpoint Financial Group (VPFG 14.97, +1.35), both of which have benefited from positive analyst commentary.

Meanwhile, the broader equity market continues to trade with a slight loss as its declining issues hold a better than 3-to-2 advantage over advancers. DJ30 -19.19 NASDAQ +0.15 SP500 -2.29 NASDAQ Adv/Vol/Dec 1259/1.00 bln/1265 NYSE Adv/Vol/Dec 1145/459 mln/1790

11:30 am : Stocks recently ran into resistance at the neutral line and, in turn, were unable to push into positive territory. As a result, stocks continue to chop along in negative territory with modest losses.

Airline stocks are down more substantially than the broader market, however. UAL Corp (UAUA 12.28, -0.51) is a primary source of weakness in the space, even though the company posted a smaller-than-expected loss for its latest quarter. Negative news regarding weak demand for airline services from The Wall Street Journal has cast a pall over the stocks in the group. DJ30 -30.60 NASDAQ +1.22 SP500 -2.24 NASDAQ Adv/Vol/Dec 1178/909 mln/1309 NYSE Adv/Vol/Dec 1102/412 mln/1845

11:00 am : Led by financial stocks, the broader equity market has made a strong upward push that has put it in striking distance of positive territory. Financials are now up 0.9% to trade near their morning highs as AIG (AIG 24.68, +0.28) makes its way to a strong gain as Treasury Secretary Geithner testifies before a House panel about the bailout of AIG.

Materials stocks (-1.3%) continue to lag, though. The sector has been bogged down by weakness among commodity prices and ongoing weakness among steel stocks, which are down 2.9%, collectively. U.S. Steel (X 46.93, -2.68) is a primary source of weakness in the sector for the second straight session -- the company's shares slumped Tuesday amid weaker-than-expected bottom line results, but has been hit this session by a downgrade from analysts at Goldman Sachs. However, analysts at Goldman Sachs upgraded AK Steel (AKS 20.81, -0.42), which posted better-than-expected earnings when it reported earlier this week. DJ30 -15.79 NASDAQ +2.38 SP500 -0.43 NASDAQ Adv/Vol/Dec 1160/756 mln/1271 NYSE Adv/Vol/Dec 1047/345 mln/1866

10:30 am : Crude oil prices continue to trade with moderate weakness in the wake of the latest weekly inventory report, which showed a draw of 3.9 million barrels when the consensus had called for a build of 1.5 million barrels. Contracts last quoted oil prices at $74.50 per barrel, down 0.3%.

Meanwhile, natural gas prices are under stiff pressure. Prices were last quoted at $5.24 per MMBtu, down 3.3%.

A combination of softer commodity prices and pressure in the broader equity market has energy stocks down 0.6%.

As for precious metals, gold prices are down nearly 0.4% to $1094.40 per ounce, while silver prices are down a sharp 1.5% to $16.61 per ounce.

Collective weakness among commodities has the CRB Commodity Index down 0.9% in its fourth decline in six sessions. Weakness among metals and other raw materials prices have added weight to materials stocks, which are down 1.2%, more than any other major sector. DJ30 -31.13 NASDAQ -1.89 SP500 -3.04 NASDAQ Adv/Vol/Dec 1064/568 mln/1316 NYSE Adv/Vol/Dec 936/255 mln/1936

10:00 am : New home sales for December hit an annualized rate of 342,000 units, which translates to a 7.6% monthly decline, but economists, on average, had called for new home sales to hit a rate of 366,000 units per year, or a 3.0% month-over-month increase.

The announcement has spurred additional selling pressure, which has sent the S&P 500 to its lowest point of the morning. Its overall loss remains modest, though.

Early movers: Trading up -- KTCC +27.6%, SIFY +27.5%, MNI +22%, ME +17%, SANM +16.1%, SMCI +15%, CPE +14.4%, ROK +10.4%, PXP +9.4%; Trading down -- GNVC -17.4%, JTX -13.1%, HTCH -10.6%, HERO -10.2%, ZAGG -8.4%, PLCM -6.6%, CX -6.4%, GPI -6.2%, USG -5.9%, BBVA -5.8%

Advancing Sectors: Financials (+0.3%), Telecom (+0.1%)
Declining Sectors: Utilities (-1.0%), Materials (-0.8%), Industrials (-0.6%), Energy (-0.4%), Consumer Staples (-0.2%)
Unchanged: Consumer Discretionary, Health Care, TechDJ30 -23.50 NASDAQ +0.25 SP500 -2.17 NASDAQ Adv/Vol/Dec 1229/326 mln/1048 NYSE Adv/Vol/Dec 1142/155 mln/1647

09:45 am : Financials had jumped out to a near 1% gain in the first few minutes of trade as specialized finance bounded. Specialized finance is currently up 1.8% after a 4% drop in the previous session. However, the broader market pressure has undercut the financial sector, which now trades with a modest 0.3% gain.

Despite the sudden flurry of selling pressure in the broader market, defensive-oriented utilities are under the most pressure. The sector is currently down to a 0.9% loss. The move has even taken Southern Co (SO 32.93, -0.04) into the red, though it posted better-than-expected earnings for its latest fiscal quarter. DJ30 -11.94 NASDAQ +6.54 SP500 -0.39 NASDAQ Adv/Vol/Dec 1291/204 mln/908 NYSE Adv/Vol/Dec 1228/103 mln/1501

09:15 am : S&P futures vs fair value: -3.50. Nasdaq futures vs fair value: -5.80. Given the persistent selling pressure that has undercut stock prices in recent sessions and the upcoming Federal Open Market Committee (FOMC) announcement (2:15 PM ET), market participants are cautious ahead of the opening bell. That has left stock futures to trade flat relative to fair value. Such shyness comes despite a bevy of better-than-expected earnings announcements, including those of Caterpillar (CAT), United Technologies (UTX), Boeing (BA), Illinois Tool Works (ITW), Abbott Labs (ABT), and ConocoPhillips (COP). However, underwhelming responses to upside surprises aren't anything new this earnings season, since many participants have had a tendency to act in a sell-the-news manner. Ongoing overseas weakness hasn't helped from a sentiment standpoint, either, as Europe's major bourses slide for their fifth time in six sessions and Hong Kong's Hang Seng trades at a multimonth low, which has threatened to violate its 200-day moving average, amid ongoing concerns about tighter monetary policy in China.

09:00 am : S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -5.00. Weakness overseas and another large batch of better-than-expected earnings have made for mixed trade in premarket action. In turn, stock futures remain flat. Additionally, though, participants remain cautious ahead of the latest FOMC policy statement, which is due at 2:15 PM ET. Meanwhile, the U.S. dollar is flat and commodities are a bit mixed in early pit trade as the CRB Commodity Index slips 0.2%.

08:30 am : S&P futures vs fair value: -0.40. Nasdaq futures vs fair value: -2.80. U.S. stock futures are generally flat, but Germany's DAX is down 0.4% in its fifth loss in six sessions. The latest move lower has been broad-based with Daimler (DAI) acting as a primary laggard -- the stock is down more than 10% since the start of the year. Losses are also broad-based in France, where the CAC is down 0.8%. Energy giant Total (TOT) is a primary source of weakness in the index. Banks like Barclays (BCS) and HSBC (HBC) are leading losses in Britain, where the FTSE has lost 0.7%. BP PLC (BP) is also a key source of weakness -- it is on pace for its fifth loss in six sessions, but is down less than 1% since the start of the year. Asia's markets were weak in their latest showing. The MSCI Asia Pacific Index lost 1.0%. Japan's Nikkei fell 0.7% to a one-month low amid weakness in Toyota (TM) and Canon (CAJ). Meanwhile, Hong Kong's Hang Seng slid 0.4% to a four-month low and closed at its 200-day moving average. The Hang Seng last came in contact with that technical line in May 2009, when the index had pushed above the line. Ongoing concern regarding tighter monetary policy underpinned most of the selling pressure, which took a heavy toll on property shares. Bank stocks in the index were a bit mixed. However, outsized weakness in the bank stocks of mainland China sent the Shanghai Composite to a 1.1% loss.

08:00 am : S&P futures vs fair value: -1.30. Nasdaq futures vs fair value: -4.50. Stock futures are flat following a raft of earnings announcements, which featured better-than-expected bottom line results from Caterpillar (CAT), Boeing (BA), Abbott Labs (ABT), BlackRock (BLK), and Hess (HES). Earnings from Yahoo! (YHOO) were in-line with the consensus. In terms of data, new home sales numbers for December are due at 10:00 AM ET, but the primary focus of participants is on the latest Federal Open Market Committee (FOMC) statement at 2:15 PM ET. All of today's action and announcements will precede a State of the Union address from President Obama at 9:00 PM ET.

06:20 am : S&P futures vs fair value: -0.10. Nasdaq futures vs fair value: -3.80.

06:20 am : Nikkei...10252.08...-73.20...-0.70%. Hang Seng...20033.07...-76.30...-0.40%.

06:20 am : FTSE...5223.86...-53.00...-1.00%. DAX...5631.25...-37.70...-0.70%.

Special thanks to Yahoo! Finance and CNNMoney for their market summaries.

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)
@ http://twitter.com/wrbtrader

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